DEA Stock Fair Value Calculation – Easterly Government Properties Shares Fall Despite Market Uncertainty in 2023
March 17, 2023
Trending News ☀️
The stock of Easterly Government Properties ($NYSE:DEA) Inc. (EGP) has steadily fallen in 2023, despite the overall market rebound from the effects of the pandemic. This decline has come at a time of great uncertainty for many investors, as the financial markets remain volatile and unpredictable. EGP, which is a publicly traded real estate investment trust focused on acquiring and owning properties leased to the federal government, has been adversely affected by fears of a potential double-dip recession. The company’s stock price has dropped by over 20% since the beginning of the year, significantly underperforming the broader market. The main concern among investors is that if the economy were to suffer another downturn, EGP would be particularly vulnerable. This is due to their reliance on long-term government leases, which may be harder to find or renegotiate during times of financial turbulence. Furthermore, the company’s profits may suffer if their tenants are unable to secure funding to make their rent payments. Despite these risks, EGP does have some potential upside in a recovering economy. With the federal government currently investing more into infrastructure and other public works projects, there could be an influx of demand for rented properties in the future. Investors are hoping that this increased interest will help to stabilize EGP’s stock and give them a chance to recoup their losses. Overall, the outlook for EGP remains uncertain, as the company continues to face significant risks in a turbulent market.
However, with the potential for a rebound in government spending, there may still be cause for optimism among investors in the long-term.
Market Price
At the time of writing, news from Easterly Government Properties Inc. (EASTERLY) has mostly been positive. However, on Thursday, the company’s stocks opened at $13.8 and closed lower at $13.5, a 3.4% decline from their last closing price of $14.0. This drop occurred despite the generally uncertain market conditions in 2023. This could be a sign that investors are no longer confident in the company’s growth prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for DEA. More…
| Total Revenues | Net Income | Net Margin |
| 293.61 | 30.93 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for DEA. More…
| Operations | Investing | Financing |
| 125.94 | -69.1 | -59.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for DEA. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.83k | 1.42k | 13.71 |
Key Ratios Snapshot
Some of the financial key ratios for DEA are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 24.8% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – DEA Stock Fair Value Calculation
GoodWhale has conducted an in-depth analysis of the fundamentals of EASTERLY GOVERNMENT PROPERTIES. After taking into account all the factors such as the company’s financial performance, business model, and competitive landscape, our proprietary Valuation Line indicates that the fair value of EASTERLY GOVERNMENT PROPERTIES’ share is around $20.4. However, the current market price is only $13.5, with a whopping undervaluation of 33.8%. This represents an excellent opportunity for investors looking to capitalize on an undervalued stock. More…
Peers
Government Properties Income Trust is a real estate investment trust that owns and operates U.S. federal, state, and local government facilities. The company was founded in 2009 and is headquartered in Boston, Massachusetts. As of December 31, 2016, the company owned 148 properties in 33 states and Washington, D.C.
– Seritage Growth Properties ($NYSE:SRG)
Heritage Growth Properties is a publicly traded real estate investment trust that owns, operates, and develops high-quality, well-occupied office properties in the United States. The company’s portfolio consists of 79 office properties located in 27 states.
– Medalist Diversified REIT Inc ($NASDAQ:MDRR)
Diversified REIT Inc is a real estate investment trust that owns, operates, and develops a portfolio of properties in the United States. The company’s portfolio includes office, retail, industrial, and multifamily properties. As of December 31, 2020, it owned and operated 703 properties with a total of 102.4 million square feet of space.
– Deutsche Konsum REIT-AG ($LTS:0RDE)
Deutsche Konsum REIT-AG is a Germany-based company that focuses on the retail sector. The company invests in shopping centers and retail parks. As of December 31, 2020, the company’s portfolio consisted of 97 properties with a total value of approximately EUR 3.6 billion.
Summary
Easterly Government Properties Inc. has seen a decrease in its stock price despite overall market uncertainty in the year 2023. Despite most news related to the company being positive, the stock price dropped on the same day. Investors should be mindful of this volatility and carefully consider the advantages and risks of investing in Easterly Government Properties. The company’s financial performance should be closely monitored and any new developments reported, as this could have an impact on the stock price.
Additionally, investors should research the company’s competitive environment and potential industry-related changes that could affect its share performance in the future.
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